US Foods Holding Corp USFD has commenced a private offering of $1.0 billion aggregate principal amount of notes, consisting of senior unsecured notes due 2028 and senior unsecured notes due 2032 by its wholly-owned subsidiary, US Foods Inc.
US Foods intends to use the net proceeds of the offering, together with cash on hand, to fund the redemption of its outstanding 6.250% senior secured notes due 2025.
The company held $379 million in cash and equivalents as of July 1, 2023.
In its recent quarter report, US Foods revised its FY23 outlook for adjusted EPS to $2.55-$2.65 from $2.45 - $2.65, against the consensus of $2.62.
Net Debt at the end of the second quarter was $4.4 billion. Net Debt to Adjusted EBITDA ratio was 3.0x at the end of the second quarter of fiscal 2023, compared to 3.5x at the end of fiscal 2022 and 4.2x at the end of Q2 2022.
Price Action: USFD shares are trading lower by 0.62% at $39.22 on the last check Monday.
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